QUESTION 1 (15 MARKS: 27 MINUTES)
You are the Financial Director of Cup Cookies Ltd "Cup Cookies".
Cup Cookies is a listed company on the JSE with 100,000 ordinary shares issued at 30 June
2014 and 20,000 10% cumulati
...
QUESTION 1 (15 MARKS: 27 MINUTES)
You are the Financial Director of Cup Cookies Ltd "Cup Cookies".
Cup Cookies is a listed company on the JSE with 100,000 ordinary shares issued at 30 June
2014 and 20,000 10% cumulative, non-redeemable preference shares at R2 per share at
date of incorporation.
The following financial information relates to the year ended 30 June 2015.
2015 2014
R R
Profit before tax 7,000,000 5,300,000
Income tax expense (1 ,960,000) (1 ,484,000}
Profit for the year 5,040,000 3,816,000
Other comprehensive Income 500,000 300,000
Total comprehensive income 5 540.000 4 :116 QQO
Additional Information
1. On 1 October 2014, a rights issue was offered to the ordinary shareholders to buy
shares at a discounted price. The rights issue was offered at 2 shares for every 5
held at R1 per share. The fair value of the shares before the rights issue was R1, 60
per share.
2. On 30 October an additional 1000, 10% cumulative, non- redeemable preference
shares were issued at R2 each.
3. On 31 March 2015 Cup Cookies issued ordinary shares for R200 000 at R1, 60 per
share.
4. The preference dividends are paid yearly on 15 May for all preference shares in issue
at 1 April. No other dividends have been paid to the shareholders at year end.
Required Total
Subtotal Total
(a) Calculate the basic earnings per share for the years ended 30 June
2014 and 2015 of Cup Cookie Ltd in accordance with lAS 33,
12
Earnings per share.
(b) Prepare the disclosure note to the Financial Statements of Cup
Cookie Ltd for Earnings Per Share in accordance with lAS 33,
3 15
Earnings per share.
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